Although Congress is unlikely this year or next to approve basic tax reform that would benefit U.S. manufacturers, for CEOs of fast-growing, privately held U.S. companies a flat tax is the preferred form of both business and personal tax reform, indicates a PricewaterhouseCoopers study released this week.
Assuming tax bills would remain about the same, 48% of the 341 owners of fast-growing, privately held U.S. companies surveyed favor a flat tax that would simplify the federal business tax structure. Some 16% would keep the current tax system. Thirteen percent prefer switching to a value-added tax.
On the personal side of taxation, 58% of the CEOs prefer a flat tax that would result in lower tax rates while eliminating tax breaks. Sixteen percent prefer a value-added tax. And another 16% would leave the individual tax system as it is.
The companies surveyed range from about $5 million to $150 million in revenue or sales.